KUALA LUMPUR: Eco World Development Group Bhd's (EWDG) has reported a 79 per cent drop in profit to RM24.09 million for the first quarter ended January 2018, mainly due to a RM94.8 million disposal gain in the corresponding quarter last year.
EWDG had reported profit of RM116.17 million for the first quarter of 2017.
Excluding the impact of the disposal gain and lower interest expense, the group would see a 30 per cent rise in quarterly core earnings before interest and tax (EBIT) to RM62.6 million from RM48.3 million.
In its filing to the stock exchange, EWDG explained this was due to lower selling, marketing and administrative expenses.
There was also higher profits from its Malaysian joint ventures following the commencement of profit recognition from the Eco Ardence and Eco Grandeur projects.
EWDG’s quarterly revenue, meanwhile, slipped 5 per cent to RM563.59 million from RM592.71 million, due to tail-end of several projects.
In a statement, EWDG president and chief executive Datuk Chang Kim Wah assured investors that the group's underlying business fundamentals remain strong as attested to by the growth in core earnings.
"This positive trend, supported by our high effective share of unbilled sales of RM6.2 billion as at first quarter of 2018, should continue as more of our joint-venture projects reach the level of construction works required to enable profit recognition to commence.
"And despite continued market challenges and a seasonally quiet first quarter, the group has noticed a marked pick-up in sales interest after the Chinese New Year period," he added.
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